4.3. SR 01-16-2001 - Laserfiche WebLink

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tt www. erstarnews.com · Wednesday, October 25, 2000/Elk River Star News / 7 IElk River .Holt and Jackson facility to house day spa, other shops by Nicole Jacob Staff writer If all goes as planned, a new day spa and other comple- mentary businesses will be moving into a new commer- cia] facility in Elk River. The Elk River City Council approved a proposal last week from H.J. Development to purchase the city-owned Holt and Jackson site for $350,000. H.J. Development plans to construct a 13,000-square- foot retail facility on the site in order to house several busi- nesses. Simonson's Day Spa has committed to leasing 5,500 square feet of space and will be the building's anchor ten- ant. The remaining space will be divided into small bays and will most likely house a bagel shop or similar businesses. Construction for the facility is slated to begin in March or April of 2001. "I think this is a good fit," Vice Mayor Paul Motin said of the plan. Although generally in favor of the proposal, the council did voice some concerns. One of H.J. Development's pur- chase contingencies was that the undevelopable northerly portion of the site be donated to the city to be used as park or green space. This portion of land is difficult to police and the developer does not want to be liable for question- able activities that may occur in this area. At the recommendation of Michele McPherson, director of planning, the city added a condition to the proposal stat- ing that it would not accept the northerly piece of proper- ty. McPherson does not feel that the city should willingly assume liability for the prop- erty. Motin raised a concern about what would happen if the plans to lease space to Simonson's did not material- ize. ~What happens if (Simonson's) backs out of the deal?" Motin asked. "I don't want it to be a Denny's-type restaurant. We're in a strange situation. When the city does own the property, we can be a bit more choosy." City Attorney Peter Beck said the city could either put a restrictive covenant on the property or rezone it as a planned unit development. McPherson noted that any prospective restaurants would require a conditional use permit. The H.J. Development pur- chase proposal was the fifth proposal for the site made in the past 18 months. Two of the previous proposals were for restaurants, and the other two were for an office building and a day-care center. None of these proposals materialized due to problems with design requirements.